President of Ukraine Volodymyr Zelensky has criticized a price cap placed on Russian oil shipments by his Western partners, deeming it “weak.”
The ban, which was imposed on Friday, is intended to prevent countries from paying more than $60 (£48) per barrel of Russian seaborne crude oil.
Russia has stated that it will not accept a price cap on its oil exports.
The move, which is set to take effect on Monday, increases Western pressure on Russia over the incursion.
However, Mr. Zelensky described the price cap as “weak” and not “severe” enough to harm the Russian economy.
In his nightly speech, Putin stated, “Russia has already caused enormous damages to all nations of the globe by deliberately destabilizing the energy market.”
He noted that it is “just a matter of time” until heavier tools are required.
The price ceiling was proposed in September by the G7 group of industrialized nations (the United States, Canada, the United Kingdom, France, Germany, Italy, Japan, and the European Union) to limit Moscow’s capacity to finance the Ukraine conflict.
The G7, the EU, and Australia stated in a joint statement that the decision was made to “prevent Russia from benefitting from its aggression against Ukraine.”
Dmitry Peskov, a spokesperson for the Kremlin, stated on Saturday that Moscow had prepared for the move but would “not accept” the cap.
Russia will undoubtedly feel the effects of the sanctions, but the damage will be mitigated by its decision to sell oil to other markets, such as India and China, which are currently the top purchasers of Russian crude oil.
The agreement on a price ceiling comes just days before an EU-wide ban on the importation of Russian crude oil by sea takes effect on 5 December.
The price ceiling, which is intended to affect global oil exports, is intended to complement this.
Countries adhering to the G7-led policy may only purchase oil and petroleum products carried by the sea at or below the price ceiling.
In addition, Ukraine’s Western allies intend to restrict insurance coverage to tankers transporting Russian oil to nations that do not adhere to the price cap. This will impede Russia’s ability to sell oil over that price.
According to the International Energy Association, more than half of Russia’s oil exports went to Europe in 2021, before the war. The greatest importer was Germany, followed by the Netherlands and Poland.
However, since the conflict, EU nations have made frantic efforts to reduce their dependence. The United States has already banned Russian crude oil, while the United Kingdom wants to eliminate it by the end of the year.
